HomeNewsBusinessCautious on ICICI Bank after Fitch doubts over corporate governance standards: Sumit Bilgaiyan

Cautious on ICICI Bank after Fitch doubts over corporate governance standards: Sumit Bilgaiyan

"The next trigger for bank from a stock market perspective will be the fourth quarter earnings. Market expectations from are muted, given the bad loan problem in the sector appears to be far from over," says Sumit Bilgaiyan, Founder of Equity99.

April 11, 2018 / 15:54 IST
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Sumit Bilgaiyan

We are little skeptical on the way things are turning out in ICICI Bank especially post Fitch expressed   doubts about the corporate governance standards at ICICI Bank, amid allegations of impropriety against
Chanda Kochhar.

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In the case of Axis Bank, there was a clear regulatory direction from the RBI. That hasn’t happened as far as ICICI Bank is concerned. If the regulator is unhappy with the board’s decision to give a clean chit to Kochhar, it should be communicated clearly.

I believe looking at the seriousness of the allegations, the board of directors, as the custodian of the interests of all stakeholders, should order an independent inquiry So, till further clarity emerges, the development will be an overhang for the stock.